Should CVS Health Break Up?

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CVS Health has expanded beyond being just a retail pharmacy, acquiring Aetna, Signify Health, and Oak Street Health in recent years. The company also owns CVS Caremark, one of the largest pharmacy benefit managers in the country. However, CVS is facing challenges in profitability, particularly in its Medicare Advantage business. The company’s decision to focus on Medicare Advantage has led to increased utilization and decreased profit margins. Some experts suggest that breaking up the company may not be the best solution, as it could eliminate potential synergies. Pressure from investors and struggles in the healthcare market are driving speculation about CVS potentially breaking up its retail and insurance units.

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